Maryland Title Insurance Agents Bond

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Top bonding rates

Bad credit program

Learn what surety bonds are, the different types of surety bonds, and how you can get bonded.Surety bonds are so confusing. I was told I had to post one but I have no idea what they are and which one is right for me. - Don't worry about it. I'll tell you everything about them. In general, surety bonds are not designed to protect your business, but rather to protect the public from dishonest business practices. A surety bond is a three-way agreement between you (the Principal), the Obligee (typically, a government department) and the Surety bond company which ensures that the bonded principal will comply with all the rules and regulations. There are four main types of surety bonds: license and permit bonds, contract bonds, court bonds and fidelity bonds. - I understand but aren't they all the same? Not exactly. Contract bonds are sometimes referred to as construction bonds. Contract bonds are designed to guarantee the performance of obligations under a contract. In other words, contract bonds protect the project owner (the obligee) by guaranteeing that the contractor will perform in accordance with the terms of the contract. There are several types of contract bonds, such as bid bonds, performance bonds and among others subdivision bonds. - Thanks, John! What about license bonds? What is the difference between license and contract bonds? License and permit bonds can be required either by the federal government, the state or the municipality. It is a prerequisite to receive a license or permit to engage in certain business activities. There are a number of license and permit bonds, such as auto dealer bonds, contractor license bonds, freight broker bonds, mortgage broker bonds and many more. For example, auto dealer bonds are required by States Department of Motor Vehicles and every state has their own bond requirements. - Thanks, John! Now I know what contract and license bonds are. What about court bonds? - Court bonds guarantee that the fiduciary will fulfill his or her responsibilities as ordered by the law or the court. There are a few types of court bonds, such as appeal bonds, guardian bonds and probate bonds. - I understand that surety bonds are designed to protect the public, but are there bonds that protect me as a business? - Yes. Fidelity bonds, also referred to as fidelity bond insurance, will protect you and your clients from any employee dishonesty, such as theft, embezzlement or forgery. You can think of fidelity bonds more as a traditional insurance policy than a typical surety bond. And these are the main types of bonds. I hope this explanation helped you figure out which one you need for your business. - Thanks, John! Now I know what surety bonds are and how they work.

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What Is a Maryland Title Insurance Agents Bond?

In Maryland as in a number of other states, insurance agents need to get licensed. An indispensable requirement for getting your Maryland title insurance producer license from the state Insurance Administration is to post a title agency bond.

Your bond serves as a layer of protection for your customers. It safeguards their interests in case you engage in any unlawful activities. The bond can provide them with a financial compensation via a proven bond claim.

Your Maryland surety bond works like a three-party contract. The principal is your insurance company that needs to obtain the bond. The Maryland Insurance Administration is the obligee that requires it. The surety is the third party that provides the bond.

Frequently Asked Questions

Who needs to obtain a title insurance agents bond?

Any entity that wants to operate as an title insurance producer in Maryland needs to obtain a license from the state Insurance Administration. You need to complete the application form and provide a set of documents.

How much does the bond cost?

The bond amount required from Maryland title insurance producers is $150,000.

This is referred to as the bond amount. It is different from your bond premium, which represents only a small percentage of this amount. If your overall finances are in good shape, the typical rates are between 1% and 5%.

Surety Bond Cost Based on Credit Score

Surety bond name

Surety bond amount

Above 700

Between 650-699

Between 600-649

Below 599

Maryland title insurance agents bond

$150,000

$1125-$2,250

$1,500-$3,750

$3,750-$7,500

$7,500-$15,000

How is your surety bond cost determined? It is set on the basis of your personal credit score, business finances, and any assets and liquidity you may have. You need to showcase the strength of your finances, so that your surety can assess the bonding risk. Your bond premium will be lower if your profile is strong.

Can I get a bond with bad credit?

Lance Surety Bonds can get you the bond you need even if you have problematic finances. We operate our Bad Credit Surety Bonds program, which is suitable for applicants with low credit scores, tax liens, bankruptcies, and civil judgements.

The rates you can expect are in the range of 5% to 10%. The higher percentage aims to compensate for the increased bonding risk. Still, as we have close partnerships with a number of A-rated, T-listed surety companies, we can offer you the best matching bond option for your case.

How do I apply for my bond?

Would you like to learn more about how bonding works? Our How to Get Bonded page is an excellent in-depth resource on the topic.

You can also reach us at (877) 514-5146 if you have questions or need help with your application. Lance Surety Bonds’ specialists will happily help you out.

How are bond claims handled for title insurance agents?

Unlike insurance, your surety bond is a safety net for your customers and for the authorities that control your field. In case you transgress from your legal obligations, you can get a claim on your bond. In this way, a harmed party can seek a reimbursement up to the penal sum of your bond, which is $150,000.

When a claim is proven, you are liable to cover all costs. At first, it may be your surety that pays the compensation to the claimant. However, you need to repay it fully afterwards. This means that bond claims are a serious financial threat to your business. They can also prevent you from getting bonded in the future - and they do harm your company’s reputation.

What Our Clients Have To Say?

Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!

Andrew Poincot

Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!

Margie Martinez

We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!